Civic Theatres Toronto

Transcription

1 OPERATING BUDGET NOTES CONTENTS Overview 1: Service Overview and Plan 5 2: 2017 Preliminary Operating Budget by Service 12 3: Issues for Discussion 22 Appendices: Performance 26 Civic Theatres Toronto 2017 OPERATING BUDGET OVERVIEW The three City-owned and operated Theatres promote theatrical, artistic and cultural programming in the community through convenient and cost-effective access to state of the art venues that support multicultural, not-for-profit, and corporate events Operating Budget Highlights The total cost to deliver these services to Toronto residents is $ million gross and $5.253 million net as shown below: (in $000's) 2016 Budget* 2017 Preliminary Budget Change $ % Gross Expenditures 23, , , % Gross Revenues 17, , , % Net Expenditures 5, ,253.0 (243.5) (4.4%) *2016 Budget includes a one-time funding for Leadership Development Sony Centre and St. Lawrence Centre met the 2.6% reduction target, through revenue enhancement strategies, while Toronto Centre for the Arts is 8.5% above the 2016 Approved Net Operating Budget driven by a loss of revenue at its Lyric Theatre and actual experience. One-time funding approved for 2016 for Leadership Development requires new funding for Preliminary Operating Budget by Expenditure Category Organization Chart Summary of 2017 Preliminary Service Changes Summary of 2017 Preliminary New & Enhanced Service Priorities N/A 6. Inflows/Outflows to / from Reserves & Reserve Funds User Fee Rate Changes CONTACTS Corporate: Judy Skinner Manager, Financial Planning Tel: (416) Judy.Skinner@toronto.ca N/A toronto.ca/budget2017

2 Fast Facts Key Service Deliverables for 2017 Sony Centre for Performing Arts offers a 3,191-seat auditorium and is Canada's largest soft seat theatre. St. Lawrence Centre for the Arts houses 2 theatres: the 876-seat Bluma Appel Theatre and the 498-seat Jane Mallet Theatre. Toronto Centre for the Arts has 4 theatres: the new 578-seat Lyric Theatre; the 300-seat Greenwin Stage Tower Theatre; the 1,036-seat George Weston Recital Hall; and the 200-seat Studio Theatre. Trends The cost per seat generally increases gradually to reflect the cost of inflation but can also fluctuate from year to year depending on the level of stage activity taking place in each location which impacts the total facility operation costs. Cost per seat for Toronto Centre for the Arts increased by 37% in 2016 driven by an increased building operations cost and departure of a longterm resident licensee of 2016, and 20% utilization at the brand new Lyric Theatre which had a soft opening November 2016 after major renovations completed in September $500.0 $450.0 $400.0 $350.0 $300.0 $250.0 $200.0 $150.0 $100.0 $50.0 $- Efficiency Measure - Facility Cost Per Seat (Toronto Centre for the Arts) Proj 2017 Target 2018 Plan 2019 Plan Series1 $356.0 $331.0 $453.0 $464.0 $467.0 $467.0 *Consolidated facility cost per seat for the three Theatres will not yet be available until the three operations have fully merged. The Civic Theatres endorse culture, arts and theatre by programming a full range of high quality performances and events for both corporate and not-for-profit artists. The 2017 Preliminary Operating Budget will enable: Sony Centre for the Performing Arts offers multi-functional space, comprehensive event services, state-of-the-art lighting and sound systems, and a world class stage. The Theatre will build the Centre's brand of excellence in programming performances with diverse appeal to all of Toronto's residents. St. Lawrence Centre for the Arts provides state-of-the-art facilities to Toronto's not-forprofit performing arts companies and local communities at an affordable cost. The Centre will continue to attract a wide range of cultural and artistic events with select corporate and not-for-profit presenters. Toronto Centre for the Arts offers a first class venue for a full range of performing arts. The Centre will become the most versatile performing arts centre in Toronto. It will build strategic links with the local arts community and seek educational and programming partners that will strengthen the operations of the Centre. toronto.ca/budget2017 Page 2

3 Where the money goes: 2017 Budget by Service Sony Centre for the Performing Arts, $20.0, 70% Equipment, $0.9, 3% Materials & Supplies, $2.4, 8% Services & Rents, $8.5, 30% $28.4 Million 2017 Budget by Expenditure Category $28.4 Million St. Lawrence Centre for the Arts, $4.0, 14% Toronto Centre for the Arts, $4.5, 16% Other Expenditures, $1.1, 4% Contribution to Reserve\Reserve Funds, $1.7, 6% Contribution to Capital, $1.0, 4% Our Key Issues & Priority Actions Leadership Development for the Civic Theatres will require new one-time funding in 2017 to support the final stage of the CEO search process and support a new CEO office for the three Civic Theatres. The new CEO will lead the task of consolidating the operations of the three Civic Theatres, and bringing efficiencies expected to arise from the merger. The search process is underway. Toronto Centre for the Arts recently lost one of its major clients at its Classical Theatre resulting in a revenue loss of $0.200 million. The 2017 Preliminary Operating Budget for Toronto Centre is above its 2016 Approved Net Operating Budget by $0.147 million or 8.5%. To meet the 2.6% reduction target, Toronto Centre would need to reduce its expenditures by $0.192 million which will negatively affect its ability to serve clients and improve future outcomes Operating Budget Highlights Where the money comes from: Sundry & Other Revenues, $3.1, 11% Contribution from Reserve/Reserve Funds, $2.3, 8% Property Tax, $5.3, 19% Salaries & Benefits, $12.9, 45% $28.4 Million User Fees & Donations, $17.7, 62% The 2017 Preliminary Operating Budget for Civic Theatres Toronto of $ million in gross expenditures provides funding for programming and operating costs for the three Civic Theatres. The Sony Centre and St. Lawrence Centre have achieved the budget reduction target of -2.6% to the 2016 Approved Budget through measures taken based on the following: Increased programming activities with "Sony Centre Presents" ($0.046 million). Increased bookings for Bluma Appel Theatre at St. Lawrence Centre ($0.045 million). The Toronto Centre for the Arts' 2017 Preliminary Operating Budget is 8.5% over the 2016 Approved Budget due to the loss of revenue: Additional reductions would lead to severe impact on Toronto Centre's operations. toronto.ca/budget2017 Page 3

4 Actions for Consideration Approval of the 2017 Preliminary Budget as presented in these notes requires that: 1. City Council approve the 2017 Preliminary Operating Budget for Civic Theatres Toronto of $ million gross, $5.253 million net for the following services: Service Gross ($000s) Net ($000s) Toronto Centre for the Arts 4, ,887.4 Sony Centre for the Performing Arts 19, ,686.0 St. Lawrence Centre for the Arts 3, ,679.6 Total Program Budget 28, , City Council approve the 2017 service levels for Civic Theatres Toronto as outlined on pages 15, 19, and 22 of this report, and associated staff complement of positions. toronto.ca/budget2017 Page 4

5 Part 1: Service Overview and Plan toronto.ca/budget2017 Page 5

6 Program Map Theatres Sony Centre For The Performing Arts Present and produce artistic programming of the highest quality from around the world to serve and educate audiences from Toronto s diverse cultures. In connection therewith, negotiate complex business programming deals to maximize the financial return to the Centre. Provide a unique performance and meeting venue, complete with state-of-the-art technology and first-class catering services. Operate, maintain and promote (with minimal overhead) the importance of Canada s largest theatre (3,191 seats), a world-class heritage designated performance venue designed by Toronto s most famous architect, Peter Dickinson. Strengthen Toronto s Youth by partnering and collaborating with educational institutions to promote the artistic achievements of our students. Bolster the economy of the St. Lawrence Neighbourhood and attract tourism. St. Lawrence Centre for the Arts Serve as home to some of the best not-for-profit theatre and music companies that reside in and produce work in the City of Toronto. Act as the cultural hub for the City and its residents by maintaining a clean, modern and service-oriented theatrical and entertainment facility. As a focus for Toronto-based performing arts and artists, the Centre will continually attract diverse, high quality, cultural, artistic and public events. Toronto Centre for the Arts The Toronto Centre for the Arts will become the most versatile performing arts centre in the GTA and a necessary and important part of the cultural lives of the City s diverse population. The Centre will be anchor to the arts community through its role as incubator and partner in promoting the arts. A full range of performing arts will be represented within the programming the Centre has to offer. The Centre will take a leading role in attracting audiences that reflect the full ethnic and social diversity of Toronto s citizens. The Centre embraces its role as an important cultural economic generator and will place strategic emphasis on maximizing the financial benefits to the greater community. The Centre will build important strategic links with the local business and arts community and will seek educational and programming partners that will strengthen the operations of the Centre and its reach into the community. Through its existing agreement with the Canadian Songwriters Hall of Fame the Centre will create the physical Canadian Songwriters Hall of Fame in its existing lobby space providing a unique destination for Canadians of all ages to explore the incredible achievements of Canadian songwriters. Theatrical & Other Culture Events Purpose: To promote Theater, Arts, and Culture in the community through convenient and cost-effective access to state of the art theater venues that support multi-cultural, not-for-profit and corporate events Legend: Program Activity Service Customer Service Theatrical & Other Culture Events Individuals Community Groups Educational Institutions Corporations Theater & Music Resident Companies Event Participants & Attendees Theatre Patrons generally and specifically Multicultural and Youth audiences Cultural Programming Producers toronto.ca/budget2017 Page 6

7 Table Preliminary Operating Budget and Plan by Service Preliminary Operating Budget Incremental Change (In $000s) Budget Projected * Base New/ Enhanced Total Budget 2017 Preliminary vs Budget Change 2018 Plan 2019 Plan By Service $ $ $ $ $ $ % $ % $ % Toronto Centre for the Arts Gross Expenditures 3, , , , % % % Revenue 2, , , , % % % Net Expenditures 1, , , , % % % Sony Centre for the Performing Arts Gross Expenditures 15, , , , , % % % Revenue 13, , , , , % Net Expenditures 1, , , ,686.0 (46.1) (2.7%) % % St. Lawrence Centre for the Arts Gross Expenditures 3, , , , % % % Revenue 1, , , , % % % Net Expenditures 1, , , ,679.6 (44.8) (2.6%) % % Leadership Development Gross Expenditures (300.0) (100.0%) Revenue Net Expenditures (300.0) (100.0%) Total Gross Expenditures 23, , , , , % % % Revenue 17, , , , , % % % Total Net Expenditures 5, , , ,253.0 (243.5) (4.4%) % % Approved Positions % *As of September 30, 2016 The Civic Theatres Toronto s 2017 Preliminary Operating Budget is $ million gross and $5.253 million net, representing a 1.1% increase over the 2016 Approved Net Operating Budget excluding the reversal of one-time funding for the Leadership Development in The three Civic Theatres are $0.192 million or 3.7% above the reduction target as set out in the 2017 Operating Budget Directions approved by Council. Base pressures are mainly attributable to increased programming activities at the Sony Centre and St. Lawrence Centre, and loss of a long-term client at Toronto Centre for the Arts. To help mitigate the above pressures, the Sony Centre will offer more "Sony Centre Presents" productions and St. Lawrence Centre will generate additional revenue from increased bookings for its Jane Mallet Theatre and Bluma Appel Theatre. Toronto Centre for the Arts has submitted an offsetting reduction against the pressures arising from the loss of its major client, however it is not included in the 2017 Preliminary Budget as it would impair the Centre's ability to serve its clients and develop more activity. Approval of the 2017 Preliminary Operating Budget will result in Civic Theatres Toronto increasing its total staff complement by 14.8 positions from to This increase reflects additional temporary staff to support planned activity levels. The new Leadership Development funding request of $0.633 million is not included in the 2017 Preliminary Operating Budget. See the Issues section for details. The 2018 and 2019 Plan increases are attributable to known inflationary costs for utilities, small programming driven expenditures, and cost of living adjustments for the three Civic Theatres staff. toronto.ca/budget2017 Page 7

8 The following graphs summarize the operating budget pressures for this Program and the actions taken that partially offset these pressures and reduce pressures. Key Cost Drivers ($ Thousands) 5, (5,551.4) Prior Year Impacts Operating Impacts of Capital Salaries and Benefits Non Labor Inflationary Impacts Other Base Changes Revenue Changes Total Pressure Actions to Achieve Budget Reduction Target ($ Thousands) (50.0) (20.5) (40.7) Opening Pressure Base Budget Reductions Efficiencies Revenue Adjustments User Fee Inflationary Increases User Fees above inflation, New & One-Time funding sources New & Enhanced Remaining Pressure toronto.ca/budget2017 Page 8

9 Table 2 Key Cost Drivers Toronto Centre for the Arts 2017 Base Operating Budget Sony Centre for the Performing Arts St. Lawrence Centre for the Arts Leadership Development Total (In $000s) $ Position $ Position $ Position $ Position $ Position Gross Expenditure Changes Prior Year Impacts Reversal of Management Consultant & Furniture Costs (300.0) (300.0) Salaries and Benefits Base Salaries & Benefits Changes (10.0) Economic Factors Corporate Economic Factors Other Base Changes Volume Driven Expenditures - Programming , , Advertising and Promotion Contracted Services - Programming 2, ,606.4 Alignment of Expenditures to Experience Total Gross Expenditure Changes , (300.0) 5, Revenue Changes User Fees Revenue - Volume Driven (168.5) (4,904.9) (441.0) (5,514.4) One-Time Increased Contributions from Toronto Centre for the Arts Improvement Reserve Fund (50.0) (50.0) Sundry Revenue (48.4) 11.4 (37.0) Total Revenue Changes (218.5) (4,953.3) (429.6) (5,601.4) Net Expenditure Changes (46.1) (300.0) (182.3) 14.8 Key cost drivers for Civic Theatres Toronto are discussed below: Salaries and Benefits Base salaries and benefits changes reflect cost of living adjustments and increased volume of activities at all three Theatres of $0.279 million. Economic Factors: Inflationary increases for utility costs at all three Theatres for hydro, natural gas and water for $0.086 million. Other Base Changes: Sony Centre will significantly increase the number of 'Sony Centre Presents' events which will require additional funds to increase staff complement by 9.6 positions, increased promotion and advertising, and contracted service costs for events programming. Toronto Centre for the Arts lost a long-term resident licensee in the last quarter of The loss of revenue of $0.200 million is reflected in the 2017 Preliminary Operating Budget which is partially offset by an increased contribution from TCA Stabilization Reserve. St. Lawrence Centre for the Arts has aligned its base budget expenses to its 2016 actual experience for food costs, and service and rental expenses which results in a need for additional funding of $0.075 million in Revenue Changes: St. Lawrence Centre experienced increased bookings for the Bluma Appel Theatre in 2016 and expects the same level of demand will continue into 2017, which will increase user fee revenue by $0.441 million in Sony Centre's "Sony Centre Presents" events will generate additional revenue of $0.068 million. toronto.ca/budget2017 Page 9

10 In order to achieve the budget reduction target, the 2017 service changes for the three Civic Theatres consists of base revenue changes of $0.050 million, service efficiency savings of $0.021 million net and revenue adjustments of $0.109 million net, for a total of $0.179 million net as detailed below. Table 3 Actions to Achieve Budget Reduction Target 2017 Preliminary Service Change Summary Description ($000s) Service Changes Sony Centre for the Performing St. Lawrence Centre for the Total Service Changes Incremental Change Toronto Centre $ $ # 2018 Plan 2019 Plan for the Arts Arts Arts Gross Net Gross Net Gross Net Gross Net Pos. Net Pos. Net Pos. Base Revenue Changes One-Time Increased Contributions from Toronto Centre for the Arts Improvement Reserve Fund (50.0) Sub-Total (50.0) (50.0) Service Efficiencies Savings in Contracted Services (20.5) (20.5) (20.5) (20.5) (0.4) (0.4) Sub-Total (20.5) (20.5) (20.5) (20.5) (0.4) (0.4) Revenue Adjustments Box Office, Handling and Ticket Service Surcharge Adj. (40.7) (40.7) (0.8) (0.8) Sony Centre Presents (68.0) (68.0) 9.6 Sub-Total (68.0) (40.7) (108.7) 9.6 (0.8) (0.8) Total Changes (50.0) (68.0) (20.5) (61.2) (20.5) (179.2) Base Revenue Changes (Savings of $0.050 million gross & net) Bridging Strategy TCA Arts Improvement Reserve Toronto Centre for the Arts will temporarily increase contributions from the Toronto Centre for the Arts Reserve Fund by $0.050 million in 2017 to partially offset its base budget pressures and revenue loss. Service Efficiencies (Savings of $0.021 million gross & net) Savings in Contracted Services St. Lawrence Centre will leverage newly tendered agreement to retain contractors for minor repair work at the Theatre. As a result, the Theatre will realize savings of $0.021 million in Revenue Adjustments (Savings of $0.109 million net) Surcharge Adjustments at St. Lawrence Centre Based on actual experience, St. Lawrence Centre anticipates additional labour recoveries of $0.030 million and $0.011 million in ticket services surcharges through the increased programming activities. Sony Centre Presents In 2017, Sony Centre will produce approximately 28 "Sony Centre Presents" events which will require additional programming expenditures of $4.885 million, fully offset by increased revenue of $4.953 million resulting in a net expenditure savings of $0.068 million. In the conventional bookings system, Sony Centre will lose revenues if a promotor/renter of the Theatre cancels. When Sony Centre produces its own events, the Theatre is able to minimize the last minute toronto.ca/budget2017 Page 10

11 cancellation risks and stabilize the Theatre usage and revenue. However, Sony will assume the risk of maintaining the booking levels at its Theatre. Table and 2019 Plan by Program Description ($000s) Gross Expense Incremental Increase Incremental Increase Revenue Net Expense % Change Position Gross Expense Revenue Net Expense % Change Position Known Impacts: Prior Year Bridging Approval Impacts Reversal of One-Time Increased Contributions from TCA Improvement Reserve Fund (50.0) 50.0 Salaries and Benefits Base Salaries and Benefits % % Base Changes Savings in Contracted Services (0.4) (0.4) (2.0%) (0.4) (0.4) (2.0%) Sub-Total (50.0) Anticipated Impacts: Base Changes User Fee Revenues 69.7 (69.7) 0.4% 70.9 (70.9) 0.4% Programming Driven Expenditures % % Sundry Revenue 0.7 (0.7) 0.0% 0.7 (0.7) 0.0% Sub-Total (15.0) (8.8) Total Incremental Impact Future year incremental costs are primarily attributable to the following: Prior Year Bridging Approval Impacts: Reversal of a one-time increased contribution from the TCA Improvement Reserve Fund in 2018 will result in a $0.050 million pressure. Known Impacts: Cost of living adjustments are reflected in all three Theatres' 2018 and 2019 Plans. St. Lawrence Centre will continue to realize the savings through the procurement for its repair work contractors. Anticipated Impacts: St. Lawrence Centre and Toronto Centre for the Arts anticipate steady growth in user fee revenue, resulting in combined revenue increase of $0.070 million and $0.071 million in 2018 and 2019, respectively. Increased programming expenditures will affect all three Theatres, resulting in an increased base pressures of $0.055 million in 2018, and $0.062 million in 2019, offset by increased user fee revenues driven by volume of activities. toronto.ca/budget2017 Page 11

12 Part 2: 2017 Preliminary Operating Budget by Service toronto.ca/budget2017 Page 12

13 Toronto Centre for the Arts Toronto Centre for the Arts What We Do Toronto Centre for the Arts plays an important role as an incubator and partner in promoting the arts and presents a full range of performing arts within its programming. The Centre takes a leading role in attracting audiences that reflect the full ethnic and social diversity of Toronto's citizens. Toronto Centre for the Arts builds strategic links with the local business and arts communities and seeks educational and programming partners that will strengthen its reach into the community. A community cultural asset that provides venues for programming comprised largely of not-for-profit cultural sector productions Service Budget by Expenditure Category ($Ms) Salaries and Benefits, $2.6, 59% Materials & Supplies, $0.5, 11% Service by Funding Source ($Ms) Property Tax, $1.9, 42% User Fees & Donations, $1.6, 37% $4.5 Million Equipment, $0.8, 18% $4.5 Million Service and Rent, $0.3, 7% Contributions to Reserves/Reserve Funds, $0.2, 5% Contribution from Reserve/Reserve Funds, $1.0, 21% Efficiency Measure George Weston Recital Hall Theatre Utilization % 60% 50% 40% 30% 20% 10% 0% Proj 2017 Target 2018 Plan 2019 Plan Series1 29% 36% 43% 36% 50% 55% The percentage of days used as a proportion of days available in the George Weston Recital Hall has been gradually increasing in 2014, 2015 and 2016 partly due to reduced labour costs. Toronto Centre will increase its marketing efforts to increase the utilization rate in toronto.ca/budget2017 Page 13

14 2017 Service Levels Toronto Centre for the Arts Sub-Activity/Type Status George Weston Theatre Corporate Events (TCA) Approved 100% utilization of the 20 day minimum booking target for corporate events 100% utilization of the 20 day minimum booking target for corporate events 100% utilization of the 20 day minimum booking target for corporate events George Weston Theatre Not-for-Profit / multi-cultural Events (TCA) The Studio Theatre Not-for-Profit / multi-cultural Events (TCA) Greenwin Theatre Corporate Events (TCA) Greenwin Theatre Not-for-Profit Events (TCA) Approved Approved Approved Approved 131% utilization of the 80 day minimum booking target for not-for-profit / multicultural events 100% utilization of the 200 day minimum booking target for not-for-profit / multicultural events 100% utilization of the 11 day minimum booking target for corporate events 100% utilization of the 94 day minimum booking target for not-for-profit / multicultural events 131% utilization of the 80 day minimum booking target for notfor-profit / multicultural events 100% utilization of the 200 day minimum booking target for notfor-profit / multicultural events 100% utilization of the 11 day minimum booking target for corporate events 100% utilization of the 94 day minimum booking target for notfor-profit / multicultural events Lyric Theatre Corporate Events (TCA) New N/A N/A Lyric Theatre Not-for-Profit Events (TCA) New N/A N/A 173% utilization of the 80 day minimum booking target for notfor-profit / multicultural events 67% utilization of the 200 day minimum booking target for notfor-profit / multicultural events 100% utilization of the 17 day minimum booking target for corporate events 95% utilization of the 98 day minimum booking target for notfor-profit / multicultural events 100% utilization of the 6 day minimum booking target for corporate events 56% utilization of the 84 day minimum booking target for not-for-profit / multicultural events Overall, the 2017 Service Levels are consistent with the approved 2016 Service Levels for Toronto Centre for the Arts, with a minor increase to the George Weston Theatre's utilization from 131% to 173% of the 80 day minimum booking target for not-for-profit and multicultural events. The new Lyric Theatre has been added to be included in 2017 service levels. toronto.ca/budget2017 Page 14

15 Effectiveness Measure Lyric Theatre Days Used/Available (%) 40% 35% 30% 25% 20% 15% 10% 5% 0% $500.0 $450.0 $400.0 $350.0 $300.0 $250.0 $200.0 $150.0 $100.0 $50.0 $ Proj 2016 Proj 2017 Target 2018 Plan 2019 Plan Series1 0% 0% 20% 25% 30% 34% Facility Cost per Seat 2017 Target 2018 Plan Series1 $356.0 $331.0 $453.0 $464.0 $467.0 The Lyric Theatre held its grand opening in November The 2016 projected availability of the Theatre is low as it was available only for the last two months of the year. As a new facility, Toronto Centre for the Arts will work towards branding and advertising the Theatre to improve its usage levels. A gradual increase over 3 year period is expected as a result of planned marketing efforts. Cost per seat at TCA remains constant in 2016 and Reconfiguration of the Main Stage theatre was completed in 2016, and future increases in the cost per seat are expected to correspond to usage and inflation factors. The Centre recently experienced a departure of one of its long-term client which will affect the Recital Hall's usage in The efforts are underway to restore its performance levels equivalent to, or higher than % 70% 60% 50% 40% 30% 20% 10% 0% 2014 Effectiveness Measure Studio Theatre - % Days Used/Available Proj 2017 Target 2018 Plan 2019 Plan Series1 67% 38% 41% 41% 42% 43% In 2015, the move of the Harold Green Theatre Company to the Greenwin Theatre impacted its utilization rate. The 2016 and future years' utilization rate is expected to recover based on historically high demands for this versatile space. The Centre projects no foreseeable disruption to the utilization of the Studio Theatre in 2017 and beyond. toronto.ca/budget2017 Page 15

16 Table Preliminary Service Budget by Activity Preliminary Operating Budget Incremental Change Base Service Preliminary Prelim. Base Budget vs. % New/ Prelim Prelim. Budget Budget Budget Changes Base 2016 Budget Change Enhanced Budget vs Budget Plan Plan ($000s) $ $ $ $ $ % $ $ $ % $ % $ % Toronto Centre for the Arts Gross Exp. 3, , , % 4, % % % Revenues 2, , , % 2, % % % Total Net Exp. 1, , , % 1, % % % Approved Positions % % The Toronto Centre for the Arts (TCA) primarily functions as a community cultural asset to provide venues for programming comprised largely of work, created and produced by the not-for-profit cultural sector. The Toronto Centre for the Arts' 2017 Preliminary Operating Budget of $4.469 million gross and $1.887 million net is $0.147 million or 8.5% over the 2016 Approved Net Operating Budget, and $0.192 million or 11.1% higher than the 2.6% reduction target. In addition to the base budget pressures common to all services, Toronto Centre is experiencing a loss of a major client at its Classical Theatre, resulting in an approximate revenue loss of $0.200 million in Although the Toronto Centre for the Arts has provided information about possible actions to be taken to bring its 2017 Preliminary Gross Expenditures down by $0.192 million, they are not included in the 2017 Preliminary Budget, as they would negatively impact services to users and efforts to market to new users. toronto.ca/budget2017 Page 16

17 Sony Centre for the Performing Arts What We Do Sony Centre presents and produces artistic programming of the highest quality from around the world to serve and educate audiences from Toronto's diverse cultures. Sony Centre for the Performing Arts The Centre provides a unique performance and meeting venue, complete with state-of-the-art technology and first class catering services. Sony Centre strengthens Toronto's youth by partnering and collaborating with educational institutions to promote the artistic achievements of students Service Budget by Expenditure Category ($Ms) Contributions to Capital, $1.0, 5% $20.0 Million Service and Rent, $7.6, 38% Materials & Supplies, $1.3, 7% Contributions to Reserves/Reserve Funds, $1.3, 7% Service by Funding Source ($Ms) Sundry & Other Revenues, $3.1, 15% Contribution from Reserve/Reserve Funds, $1.3, 6% Property Tax, $1.7, 9% $20.0 Million User Fees & Donations, $13.9, 70% Salaries and Benefits, $7.6, 38% Equipment, $0.1, 0% Other Expenditures, $1.0, 5% $700.0 $600.0 $500.0 $400.0 $300.0 $200.0 $100.0 $ Efficiency Measure Facility Cost per Seat 2016 Proj 2017 Target 2018 Plan 2019 Plan Series1 $331.0 $507.3 $616.2 $528.3 $508.6 $488.7 The 2015 and 2016 cost per seat includes the increased provision for utilities, as well as the operational costs for the expanded and renovated backstage area. In 2017, Sony Centre anticipates a decrease to the facility cost per seat driven by the increased "Sony Presents" programming activities. toronto.ca/budget2017 Page 17

18 2017 Service Levels Sony Centre for the Performing Arts Sub-Activity/Type Status Sony Center Theatre Corporate Events Approved 95% utilization of the 36 day minimum booking target for corporate events 95% utilization of the 36 day minimum booking target for corporate events 95% utilization of the 36 day minimum booking target for corporate events Sony Centre Theatre Not-for-Profit / multi-cultural Events Approved 95% utilization for the 98 day minimum booking target for not-for-profit / multicultural events 95% utilization for the 98 day minimum booking target for notfor-profit / multi-cultural events 95% utilization for the 98 day minimum booking target for notfor-profit / multi-cultural events Overall, the 2017 Service Levels are consistent with the approved 2016 Service Levels for Sony Centre for the Performing Arts. 350, , , , , ,000 50, Efficiency Measure Audience and Subsidy Per Capita Proj 2017 Target 2018 Plan 2019 Plan Series1 219, , , , , ,732 Series2 $5.65 $6.83 $6.58 $6.00 $5.71 $5.44 $8.00 $7.00 $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $- Sony Centre projects a steady increase in the number of visitors, driven by "Sony Centre Presents" productions. Although the number of visitors are expected to increase, the 'subsidy per capita' is projected to decline as the Sony Centre continues to maintain and improve financial sustainability. Table Preliminary Service Budget by Activity Preliminary Operating Budget Incremental Change Base Service Preliminary Prelim. Base Budget vs. % New/ Prelim Prelim. Budget Budget Budget Changes Base 2016 Budget Change Enhanced Budget vs Budget Plan Plan ($000s) $ $ $ $ $ % $ $ $ % $ % $ % Sony Centre for the Performing Arts Gross Exp. 15, , , , % 19, , % 0.0% Revenues 13, , , , % 18, , % 0.0% Total Net Exp. 1, , ,686.0 (46.1) (2.7%) 1,686.0 (46.1) (2.7%) 0.0% Approved Positions % % 0.0% The Sony Centre for the Performing Arts serves the citizens of Toronto by providing leadership in entertainment, education and inspiration through the highest quality of national and international performing arts as an essential component to the fabric of society. The Sony Centre for the Performing Arts' 2017 Preliminary Operating Budget of $ million gross and $1.686 million net is $0.046 million or 2.7% below the 2016 Approved Net Operating Budget. In addition to the base budget pressures common to all services, Sony Centre will increase to production of "Sony Centre Presents" events, from 12 shows per year, to 28 shows in 2017 which is anticipated to generate net revenue of $0.046 million. toronto.ca/budget2017 Page 18

19 St. Lawrence for the Arts What We Do St. Lawrence Centre serves as home to some of the best not-for-profit theatre and music companies that reside in and produce work in the City of Toronto. St. Lawrence for the Arts The Centre acts as a cultural hub for the City and its residents by maintaining a clean, modern and service-oriented theatrical and entertainment facility. St. Lawrence Centre continually attracts diverse, high quality, cultural, artistic and public events Service Budget by Expenditure Category ($Ms) Service by Funding Source ($Ms) Salaries and Benefits, $2.7, 68% Property Tax, $1.7, 42% User Fees & Donations, $2.2, 54% $4.0 Million Materials & Supplies, $0.5, 13% $4.0 Million Service and Rent, $0.5, 14% Contribution to Other Expenditures, Reserves/Reserve $0.1, 2% Funds, $0.1, 3% Sundry & Other Revenues, $0.0, 1% Contribution from Reserve/Reserve Funds, $0.1, 3% Efficiency Measure Facility Cost per Seat $ $ $ $ $ $ $ $ $ Proj 2017 Target 2018 Plan 2019 Plan Series1 $ $ $ $ $ $ The steady increase in the cost per seat at St. Lawrence Centre is due to rising City building and maintenance charges, and utility rate increases. Future year increases in cost per seat are estimated at the rate of inflation toronto.ca/budget2017 Page 19

20 2017 Service Levels St. Lawrence Centre for the Arts Sub-Activity/Type Status Bluma Appel Theatre Corporate Events (STLCA) Approved 60% utilization of the 20 day minimum booking target for corporate events 60% utilization of the 20 day minimum booking target for corporate events 100% utilization of the 20 day minimum booking target for corporate events Bluma Appel Theatre Not-for-Profit / multi-cultural Events (STLCA) Jane Mallett Theatre Corporate Events (STLCA) Jane Mallett Theatre Not-for-Profit / multi-cultural Events (STLCA) Rehearsal Hall Corporate Events (STLCA) Rehearsal Hall Theatre Not-for-Profit / multicultural Events (STLCA) Approved Approved Approved Approved Approved 88% utilization of the 126 day minimum booking target for not-for-profit / multicultural events 113% utilization of the 15 day minimum booking target for corporate events 125% utilization of the 64 day minimum booking target for not-for-profit / multicultural events 35% utilization of the 15 day minimum booking target for corporate events 147% utilization of the 35 day minimum booking target for not-for-profit / multicultural events 88% utilization of the 126 day minimum booking target for notfor-profit / multicultural events 113% utilization of the 15 day minimum booking target for corporate events 125% utilization of the 64 day minimum booking target for notfor-profit / multicultural events 35% utilization of the 15 day minimum booking target for corporate events 147% utilization of the 35 day minimum booking target for notfor-profit / multicultural events 116% utilization of the 126 day minimum booking target for notfor-profit / multicultural events 100% utilization of the 15 day minimum booking target for corporate events 137% utilization of the 65 day minimum booking target for notfor-profit / multicultural events 35% utilization of the 15 day minimum booking target for corporate events 147% utilization of the 35 day minimum booking target for notfor-profit / multicultural events Overall, the 2017 Service Levels will be enhanced for its Bluma Appel Theatre and Jane Mallet Theatre's not-forprofit and multicultural events. St. Lawrence Centre experienced great success with the Bluma Appel Theatre and anticipates that the trend to continue in 2017 and beyond, for both Corporate and Non-for-Profit events. Effectiveness Measure Bluma Appel Theatre Days Used/Available (%) 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Proj 2017 Target 2018 Plan 2019 Plan Series1 28% 47% 41% 45% 46% 47% The percentage of days used-todays available (365 days) in the Bluma Appel Theatre declined in 2014 primarily because of lower Canadian Stage presentations and bookings. Bluma Appel theatre usage will rise in due to higher number of weeks contributed in part by Canadian Stage and Soulpepper shows. Percentage of days used is based on known bookings by resident licensees and one-off events confirmed. toronto.ca/budget2017 Page 20

21 Effectiveness Measure Jane Mallet Theatre % Days Used/Available 35% 30% 25% 20% 15% Jane Mallet Theatre remains stable with no significant changes in usage with main resident licensees Percentage of days used is based on known bookings by resident licensees and one-off events confirmed 10% 5% 0% Proj 2017 Target 2018 Plan 2019 Plan Series1 30% 27% 29% 28% 29% 30% Table Preliminary Service Budget by Activity Preliminary Operating Budget Incremental Change Base Service Preliminary Prelim. Base Budget vs. % New/ Prelim Prelim. Budget Budget Budget Changes Base 2016 Budget Change Enhanced Budget vs Budget Plan Plan ($000s) $ $ $ $ $ % $ $ $ % $ % $ % St. Lawrence Centre for the Arts Gross Exp. 3, ,004.3 (20.5) 3, % 3, % % % Revenues 1, , , % 2, % % % Total Net Exp. 1, ,740.8 (61.2) 1,679.6 (44.8) (2.6%) 1,679.6 (44.8) (2.6%) % % Approved Positions % % The St. Lawrence Centre for the Arts provide state-of-the-art facilities to Toronto's not-for-profit performing arts companies and local communities at an affordable cost, attracting a wide range of cultural and artistic events with select corporate and not-for-profit presenters. The St. Lawrence Centre for the Arts' 2017 Preliminary Operating Budget of $3.984 million gross and $2.304 million net is $0.045 million or 2.6% under the 2016 Approved Net Operating Budget. In addition to the base budget pressures common to all services, this service is experiencing higher than planned demands for the use of its Bluma Appel Theatre and expects the level of programming activities to grow in The 2017 Preliminary Operating Budget also includes a savings of $0.021 million net, as St. Lawrence Centre will leverage newly tendered agreement for retaining contractors for repair work. toronto.ca/budget2017 Page 21

22 Part 3: Issues for Discussion toronto.ca/budget2017 Page 22

23 Issues Impacting the 2017 Budget Budget Reduction Target At its meeting on July 12, 2016, the "2017 Budget Process: Budget Directions and Schedule" staff report (EX16.37) was submitted for consideration and adopted by City Council regarding the establishment of the 2017 Budget Process and the scheduling of the review and approval of the Tax and Rate Supported 2017 Operating Budget and Capital Budget and Plan for the City of Toronto. City Council adopted an across the board budget reduction target of -2.6% net below the 2016 Approved Net Operating Budgets for all City Programs and Agencies utilizing strategies including but not limited to controlling expenditures through cost saving measures, and exploring all services for efficiency savings including opportunities from business process reengineering, streamlining, transformation and innovation to service delivery. The Civic Theatres Toronto's 2017 Preliminary Operating Budget is $ million gross and $5.253 million net, representing a 1.1% decrease from the 2016 Approved Net Operating Budget. Collectively, this budget is $0.192 million or 3.7% above the budget reduction target, as set out in the 2017 Operating Budget Directions approved by Council for all City Programs, Agencies and Accountability Offices. Toronto Centre for the Arts' 2017 Preliminary Operating Budget is $0.147 million, or 8.5% over the 2016 Approved Net Operating Budget. o A major client has ended its licensing contract with the Toronto Centre in September of To offset the above pressure and meet the 2.6% reduction target, Toronto Centre provided information about possible actions to be taken to bring its 2017 Preliminary Gross Expenditures down by $0.192 million inclusive of 1 staff complement reduction. However, it is not included in the 2017 Preliminary Operating Budget, as it would negatively impact services to users and efforts to market to new users. o The above action would bring Toronto Centre's net budget down from $1.887 million net, to $1.695 million net, representing a decrease of 2.6% below its 2016 Approved Net Operating Budget. Sony Centre for the Performing Arts has met the 2.6% reduction target via the following actions: o The 2017 calendar has more "Sony Centre Presents" events than in 2016 (28 in 2017 vs 12 in 2016) representing an increase of 133% which will generate higher revenue for the Theatre. See page 11 for details. St. Lawrence Centre for the Art has met the 2.6% reduction target via the following: o In 2016, St. Lawrence Centre experienced higher than budgeted demand for its Bluma Appel Theatre. The Soulpepper Theatre Company booked the theatre for four weeks of December as well as into the first half of 2017 to produce shows. o With the confirmed bookings, St. Lawrence Centre is able to increase its revenue estimates in 2017 by $0.482 million, which is further supported by other new bookings with non-profit organizations. toronto.ca/budget2017 Page 23

24 Issues Impacting Future Years Future of the Three Major Civic Theatres Progress Update A Theatres Working Group was established in 2013 and engaged a consultant to review the operating model and the governance structure with the objective of enhancing the relevance of theatres to the communities they serve, increasing theatre usage and improving the financial viability of the theatres. A report entitled "Report on the Future of the Civic Theatres" (EX7.15) was approved by Council on July 7, 2015 and recommended consolidating the operations of the St. Lawrence Centre, Sony Centre, and TCA into one new organization under the direction of a single Civic Theatres Toronto (CTT) Board, with a new inaugural Chief Executive Officer, and to commence the governance and operational transition process ( In 2016, funding of $0.300 million for Leadership Development was approved in the 2016 Net Operating Budget which was allocated for the CEO search process. The CEO search process began in July It is expected that the recruitment process will be finalized by the end of 2016 and the new CEO office will be in place by the first quarter of The inaugural CEO will be tasked with leading the consolidation process. To finalize the CEO recruitment process and to support the new CEO office, a new Leadership Development request of $0.633 million has been submitted for consideration but has not been included in the 2017 Preliminary Operating Budget. This new request was approved by the Civic Theatres Toronto Board at its meeting held on October 27, 2016 ( This new request of $0.633 million represents one-time funding to cover such expenses as Final disbursements required for the CEO search process for interviewing the final candidates (i.e., travel, accommodations, per diems), City Clerk's support costs for the first year of Board and Committee management, The compensation package for CEO and support for CEO and Board work in the 2017 transition year. The Program budget cannot accommodate the new request until efficiencies are realized from the new operating model that will arise from the eventual consolidation of the three Theatres. It is anticipated that the consolidation and restructuring of the operations of these three performing arts venues, all expenses will be absorbed into the global budget of CTT. toronto.ca/budget2017 Page 24

25 Appendices toronto.ca/budget2017 Page 25

26 Appendix Service Performance Key Service Accomplishments In 2016, Toronto Centre for the Arts accomplished the following: Completed phase two of the Main Stage Reconfiguration Project that converted the 1,800 seat Main Stage Theatre into two smaller venues, the 296 seat Greenwin Theatre and the 578 seat Lyric Theatre with the grand opening in the fall of Achieved the utilization targets for the Studio, Greenwin Theatre and George Weston Recital Hall. Achieved the sharing of the St Lawrence Centre CFO with the TCA, an important step towards the implementation of shared efficiencies between the City owned theatres. In 2016, Sony Centre for the Performing Arts accomplished the following: Achieved the highest # of performances since the re-opening in 2010 at 91. Achieved the highest level of programming sponsorship private and public valued at $1.549 million. Increased community outreach initiatives over 5,000 attendees in Completed new website design ready for the new consolidated theatres' operations. Successful programming activities such as the Just For Laughs and Fall For Dance North festivals, Doors Open!, and Classic Film/Orchestra events. In 2016, St. Lawrence for the Arts accomplished the following: Maintained a strong customer relationship with Soulpepper Theatre Company to become a resident licensee. Participated in the three-way MOU alongside Canadian Stage and Ryerson University to examine future possibilities for the Centre, a complete tear down and re-build. Worked with City Staff and Consultants in new strategic direction for the three theatres. Hosted the Miss Universe Canada and Toronto Jazz Festival presentations. Booked Soulpepper for four weeks of December shows in the Bluma Appel Theatre. Installed new Point of Sale System and video wall in the Jane Mallet Theatre. toronto.ca/budget2017 Page 26

27 Appendix Preliminary Operating Budget by Expenditure Category Program Summary by Expenditure Category Change Projected Preliminary from 2016 Plan Category of Expense Budget * Budget Budget ($000's) $ $ $ $ $ $ % $ $ Salaries and Benefits 4, , , , , , % 12, ,892.5 Materials and Supplies , , , , % 2, ,444.5 Equipment % Services & Rents , , , , , % 8, ,481.2 Contributions to Capital 1, , (97.4) (9.1%) Contributions to Reserve/Res Funds , , , ,670.2 (96.5) (5.5%) 1, ,670.2 Other Expenditures , % 1, ,126.1 Interdivisional Charges Total Gross Expenditures 6, , , , , , % 28, ,420.1 Interdivisional Recoveries Provincial Subsidies Federal Subsidies Other Subsidies User Fees & Donations 3, , , , , , % 17, ,785.9 Transfers from Capital Fund Contribution from Reserve/Reserve Funds 2, , , ,324.5 (46.4) (2.0%) 2, ,324.5 Sundry Revenues , , , , % 3, ,112.1 Total Revenues 3, , , , , , % 23, ,222.5 Total Net Expenditures 3, , , , , % 5, ,197.6 Approved Positions % 1, ,007.5 * Based on the month Operating Variance Report The Civic Theatres Toronto reported a small year-to-date unfavourable variance of $0.067 million as of September 30, 2016, primarily driven by higher utility costs and programming expenditures partially offset by increased programming activities. Unfavourable year-end net variance of $0.541 million or 9.8% over the 2016 Approved Net Budget is forecasted primarily driven by the loss of revenue at Toronto Centre for the Arts. For additional information regarding the 2016 Q3 operating variances and year-end projections, please refer to the attached link for the report entitled "Operating Variance Report for the Nine-Month Period Ended September 30, 2016" considered by City Council at its meeting on December 13, Impact of 2016 Operating Variance on the 2017 Preliminary Operating Budget St. Lawrence Centre for the Arts adjusted its 2017 Preliminary Operating Budget by $0.446 million gross and $0.016 million net, to align with its actual experience in 2016 at its Bluma Appel Theatre. Toronto Centre for the Arts adjusted its 2017 Preliminary Operating Budget by reducing revenue of $0.200 million to reflect the recent departure of one of its large client at its Classical Theatre. Recovery efforts will be made to ensure minimal impact to its fiscal sustainability in 2017 and beyond. toronto.ca/budget2017 Page 27

28 Appendix 3a Toronto Centre for the Arts 2017 Organization Chart General Manager Director Production and Facility Services Director Operations Director Finance and Administration Stage Hands Custodial Duty Managers Security Bookings Coordinator Office Coordinator / Booking Associate Production Managers (2) Building Operators IT Services Outsourced New Media Marketing Coordinator Payroll and AP Clerk TM and Inventory Data Entry FOH Manager Payroll Manager / Data Entry Coordinator FOH Cash Supervisors Bartenders and Concession Ushers Box Office Manager Stage Door Box Office Coordinator and Supervisors Box Office Staff 2017 Total Complement Category Senior Management Management Exempt Professional & Clerical Union Total Permanent Temporary Total toronto.ca/budget2017 Page 28

29 Appendix 3b Sony Centre for the Performing Arts 2017 Organization Chart Category Senior Management 2017 Total Complement Management Exempt Professional & Clerical Union Total Permanent Temporary Total toronto.ca/budget2017 Page 29

30 Appendix 3c St. Lawrence for the Arts 2017 Organization Chart Category Senior Management 2017 Total Complement Management Exempt Professional & Clerical Union Total Permanent Temporary Total toronto.ca/budget2017 Page 30